ISLAMABAD – The Federal Board of Revenue (FBR) has imposed a 40 percent regulatory duty on the import of used and old vehicles under the provisions of the Import Policy Order 2022.
The new duty will apply to vehicles that meet specific conditions outlined in the policy and fall under the relevant PCT headings.
This regulatory duty is aimed at controlling the influx of used vehicles into the country and curbing foreign exchange outflows. The decision is based on the authority granted under Section 18(3) of the Customs Act 1969.
According to the notification issued by FBR, the duty will specifically target vehicles falling under PCT headings 8702, 8703, 8704, and 8711. These are typically commercial imports of used vehicles, and the move is intended to reduce the volume of imports and strengthen the country’s economy by preserving foreign reserves.
The policy is also seen as a step to protect the local automotive industry and ensure a balanced import-export scenario in Pakistan.
